Tag BHPH

…With the FTC and the CFPB? I’ve written before about the various regulations auto dealers are required to comply with, the wave of new regulations expected now that the CFPB is up and running at full strength and the growing threat of increased enforcement action on the horizon as these agencies flex their new muscles. Today I want to look at the 3 top reasons dealers are not prepared. 1.      They

From the FTC Business Center Blog By Lesley Fair December 4, 2012 – 4:01pm The wheels are turning on proposed updates to the FTC’s Used Car Rule.  Formally known as the Used Motor Vehicle Trade Regulation Rule (although only its Mother calls it that), the Rule has been in effect since 1985.  It requires car dealers to display a window sticker, called a Buyers Guide, on used cars they offer

An article I wrote that appears in the November issue of Auto Dealer Monthly 2012 has been a pretty good year for BHPH dealers. Sales have been up for many dealers. Delinquencies have been below last year’s levels for most dealers. There are more sources of capital available almost every day and the future looks bright. Let’s take a look at 5 areas that give us a pretty good picture of

A great article that Ken Shilson, founder and President of the National Alliance of Buy Here Pay Here Dealers, wrote and has graciously allowed us to share with you here. New developments in the Buy Here, Pay Here (BHPH) industry are happening at an unprecedented pace, and new operators are entering the business in record numbers! Both new entrants and experienced operators are seeking exceptional profit opportunities in the low

We are pleased to post this article written by Leslie Fair from the Federal Trade Commission Business Center Blog By Lesley Fair November 16, 2012 – 11:32am Every business generates paper destined for the circular file.  But if documents contain sensitive information, don’t toss them out in a way that could invite unauthorized access.  According to the FTC’s lawsuit against PLS Financial Services, PLS Group, and The Payday Loan Store of Illinois,

The Truth in Lending Act, also known as TILA, is a federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms in the lending arrangement and all costs. This law is contained in Title I of the Consumer Credit Protection Act. The regulations implementing the statute are known as Regulation Z for purchase transactions and Regulation M for lease transactions. The exact requirements for enacting most of the specific

In the last two installments, we looked at how poorly most dealerships handle incoming sales calls and some tips at getting the information you need from each call. In this segment I want to talk about five things you should never do or say during that first call. 1.     Fill out the application Completing the actual credit application is something that needs to be done in person. You can’t look a

As promised, here is the next installment of our blog posts on handling incoming sales calls. In my last post, we looked at how poorly the average dealership handled these calls and how much money was being lost by not taking advantage of these opportunities. In this installment, we will talk about what should be your goal for every call and techniques for reaching those goals. Your first goal with

Good Morning, ABC Motors. How can I help you?    I saw an ’02 Malibu on your lot yesterday. How much is it? I’m sorry, we already sold that car.    Uh, OK. Thanks. Goodbye. How many sales calls at your dealership sound like this one?  More than you think according to numerous studies. A  J. D. Powers study of inbound sales calls to auto dealerships found that: Only 11%

I often begin our Collections training class by asking the students what the most important collection tool is at their dealerships. I get answers ranging from the telephone to the tow truck but I have never had a student give me the right answer. The correct answer is the application. That’s right, if you want to successfully collect the loans or leases you make to your dealer controlled financing customers,